crude weekly insights – Fuel oil markets movements – Furnace oil prices up in India
crude prompt month futures closed up on Friday. Brent logged in around 8 pct gains to finish just shy of $110 per bbl as last week’s optimism faded after no meaningful progress came out of Trump-Xi meet. U.S May crude futures rose around 10 pct during the week.
Timespreads fell to bottom on the first day of the week followed by gradual recovery over depleting global oil inventories. Investors moving cautiously to prepare for another betting before expire of prompt month contract.
Inventories data lent support to oil complex. Massive draws in U.S and depleting ARA European stocks sent mixed signals. A small build was reported in SG markets after consecutive weekly draws. Refined product markets continue to witness tightness.
Market Positioning data painted bearish picture during the week ending 12th May 2026. As per the weekly report published by ICE and CFTC, Money managers reduced net length in major crude F&O. longs left the markets while short positions were built up during the week. Surprisingly Money flow could not turn the price momentum this week.
FUEL OIL MARKETS
Singapore bunker fuel markets showed divergent trends during the week, with VLSFO 0.5% rising to $840.50 per mt amid firm bunker demand and tight prompt supply, while HSFO 380 CST weakened to $690 per mt due to ample inventories and softer high sulfur fuel consumption. The Hi-5 spread widened significantly, reflecting stronger compliant fuel economics and favorable scrubber margins. VLSFO timespreads indicated mild backwardation, signaling healthy near term demand, whereas HSFO structure leaned toward contango amid comfortable supply conditions. Market sentiment was also influenced by steady Singapore bunker demand, refinery optimization toward middle distillates, and cautious speculative positioning in fuel oil futures. Near term outlook remains bullish for VLSFO, while HSFO may remain range bound unless fuel oil inventories tighten. Furnace oil prices are increased while LDO prices are reduced in India wef 16th May, 2026.
